iraq: oil and gas revenue sharing - natural resource … · iraq: oil and gas revenue sharing...
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$7 billion
Iraq: Oil and Gas Revenue Sharing
HISTORY OF REFORMS
OIL AND GAS REVENUE AS A SHARE OF GOVERNMENT REVENUE
84%OIL AND GAS EXPORTS AS A SHARE OF TOTAL IRAQI EXPORTS
99%
SOURCE: Lasa Aresti, M. Oil and Gas Revenue Sharing in Iraq (Natural Resource Governance Institute, 2016). http://www.resourcegovernance.org/analysis-tools/publications/revenue-sharingcase-study-oil-and-gas-revenue-sharing-iraq
9%
74%
9%
There is high volatility in total RDP allocation over the years.
PATTERN OF DISTRIBUTION
2010 2011 2012 2013 2014 2015 2016
50%
50%
PETRODOLLARALLOCATION
RDP ALLOCATION
TOTAL DISTRIBUTION:$3.0 BILLION
MINERAL REVENUES SHARED WITH SUBNATIONAL GOVERNMENTS
TOTALREVENUES
DISTRIBUTIONOF REVENUES
Basrah and Kirkuk are the highest producing governorates outside KRG and benefit the most from petrodollar allocation
GEOGRAPHIC DISTRIBUTION (2015)
IRAQ
IRAN
SAUDI ARABIA
TURKEY
SYRIA
AZERBAIJAN
GEORGIA
JORDAN
ARMENIA
RUSSIA
KUW.
Kut
Kirkuk
Najaf
Basrah
MawsilArbil
Baghdad
RDP AND PETRODOLLARALLOCATION(PER CAPITA)RDP AND PETRODOLLAR
ALLOCATION (PER CAPITA)
ANBAR
KERBALA
NINEWA
MUTHANNA
NAJAF
WASIT
DIYALA
ERBIL
MISSAN
THI-CAR
BASRAH
DAHUK
BABIL
SALAH AL-DEEN
SULAYMANIYAH
KIRKUK
QADISIYAH
BAGHDAD $157
$90
$84
$172
$120
$445
$163
$80
$99
$99
$90
$82
$91
$98
$103
$239
$98
$92
$200 AND MORE$100 - $199LESS THAN $100RDP AND PETRODOLLAR ALLOCATION (PER CAPITA)
U.S. invasion and ending of Saddam Hussein’s mandate. Beginning of the Iraq War.
Establishment of the Iraqi Interim government.
Multi-party elections; constitutional referendum.
Oil and Gas Law of the Kurdistan Region-Iraq.
2003 2004 2005 2007
Introduction of Petrodollar allocation.
2010
Oil export agreement between Baghdad and the
KRG which now includes Kirkuk and Halabja
Budget law includes $3 billion for the petrodollar program
and 17% of actual expenditure for the KRG
2014 2015
End of Iraq War
2011
$17.2billion
SPECIAL ARRANGEMENTTO KURDISTAN REGIONAL
GOVERNMENT
$12.7 billionKURDISTAN
$12.7 billion
PETRODOLLARALLOCATIONS
$1.5 billion13 PRODUCING GOVERNORATES
(EXCLUDING KRG)
$1.5 billion
REGIONAL DEVELOPMENT PROGRAM (RDP) TRANSFERS
$1.5 billion18 GOVERNORATES
(INCLUDING THOSE IN KRG)
$1.5 billion
Iraq is a federal country comprising 18 governorates. 15 governorates are administered by provincial governments and three are administered by the Kurd-istan Regional Government (KRG). The main source of revenue for the gover-norates are the RDP transfers, petrodol-lar allocations, and KRG transfers.
• The petrodollar allocation consists of a transfer of US $ 1 to governorates for each barrel of oil produced, for each barrel refined, and for each 150 cubic meters of natural gas produced. Exclud-ed from this allocation are the governor-ates of the KRG, who benefit from a separate share allocated to the region, as
well as non-producing governorates- Diyala and Karbala.
• The RDP is distributed among the eighteen provincial governments, including those within the KRG.
• Transfers to the KRG are supposed to be 17 percent of the total budget.
REVENUES AND DISTRIBUTION (2015 )